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Supplier Relationship Management Flashcards

7 cards from real CPSM practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Supplier Relationship Management flashcards as text

  1. Which SRM model segment typically receives the most strategic investment and collaborative development efforts?

    Answer: Strategic suppliers

    Strategic suppliers are critical to competitive advantage and receive the highest investment in joint development, executive engagement, and long-term partnership activities.

  2. A Supplier Scorecard is primarily used to:

    Answer: Measure and communicate supplier performance against defined KPIs

    Supplier scorecards provide a structured, data-driven mechanism to track performance metrics and enable transparent two-way feedback between buyer and supplier.

  3. Which of the following best describes 'supplier development' in the context of SRM?

    Answer: Helping existing suppliers improve capabilities to meet buyer requirements

    Supplier development involves deliberate buyer investment—through training, process support, or co-investment—to improve a supplier's performance, quality, or capacity.

  4. A Supplier Relationship Manager notices a key supplier's on-time delivery has dropped below 80% for three consecutive months. The MOST appropriate first step is to:

    Answer: Issue a formal corrective action request (CAR) and schedule a root-cause meeting

    A corrective action request combined with a root-cause analysis meeting is the structured, collaborative first step that gives the supplier an opportunity to identify and fix underlying issues.

  5. Which metric is MOST relevant when evaluating supplier quality performance?

    Answer: Parts Per Million (PPM) defect rate

    Parts Per Million defect rate directly measures the frequency of defective units supplied, making it the standard quality KPI in supplier performance management.

  6. In SRM, a 'preferred supplier' designation typically means the supplier:

    Answer: Has demonstrated superior performance and receives volume preference over others

    Preferred supplier status is earned through consistently high performance and typically grants the supplier priority consideration for new business within the category.

  7. Which of the following is a key benefit of implementing a formal SRM program?

    Answer: Enables early access to supplier innovation and reduces supply disruptions

    A structured SRM program builds trust and open communication, which encourages suppliers to share new ideas and proactively flag risks before they become disruptions.